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(Telegraph) – GORDON BROWN could continue as Prime Minister for weeks even if he loses the election, under Whitehall proposals to prevent a run on the pound in the event of a hung parliament.

Unprecedented contingency plans are being drawn up by the most senior civil servant to avoid any economic crisis if Labour or the Tories are unable to secure a majority.

Officials under the direction of Sir Gus O’Donnell, the Cabinet Secretary, are finalising details to ensure a coalition government can be agreed swiftly. For the first time, opposition parties will be able to call on civil servants to analyse policies that may be part of a deal.

The plans are part of a concerted attempt to ensure there is neither a void at the heart of government nor a need for an immediate second election.

But civil servants have admitted that the constitutional process is so complex and the need for stability so great in the current economic crisis that Mr Brown might have to remain in Number 10 for weeks if he lost power by only a few votes. Sir Gus recently told a Commons committee that it would be up to the Prime Minister to decide when to resign even if the Conservatives were the biggest party in a hung parliament.

There is great concern in Whitehall that there could be a run on the pound if financial markets fear that, without an outright winner, firm action to tackle the public deficit will not be taken. Government sources admit that there is concern about fragile confidence in the City in such an eventuality.

Officials have pointed out that the Queen has the power to block an immediate second election if she believed it would be “detrimental to the national economy”.

Since the turn of the year, the Tory lead over Labour in opinion polls has narrowed, leading to speculation that Britain is on the verge of its first hung parliament for almost 40 years.

As a result, Sir Gus has set out guidance in a new Cabinet manual. Even if David Cameron won the most seats, Mr Brown would not be required to stand down if the Tories did not have an overall majority although he would be likely to do so if they were well ahead of Labour.

Mr Brown has already indicated his desire to carry on as Labour leader even if he was defeated and if he could form a Commons majority in a deal with the Liberal Democrats that would enable him to get his Queen’s Speech through.

The Prime Minister would be given time to do a deal if the Liberal Democrats did not immediately state that they were opposed to striking a bargain with Labour, officials have indicated. There would be a curb on what powers he could exercise until a settled government was formed. Significant policy statements would be vetoed.

Should Mr Brown fail to “command the confidence of the Commons” then Mr Cameron would be asked if he could secure a deal with minority parties to get his plans through.

This process could take weeks so the new rules aim to hasten agreement. By convention, civil servants are neutral and serve the Government of the day.

That would, in this case, still normally be the Prime Minister and ministers – even if Labour no longer had a majority.

But the new rules state that civil servants will also be allowed to assist opposition parties as they try to hammer out a deal. Officials fear the process could be further hampered by the Commons timetable.

Should the election take place on May 6, Parliament would not reassemble until the following week, possibly midweek. Its first task would be to elect a new Speaker, which could take days.

Normally it would simply mean rubber-stamping the incumbent. But such is his unpopularity among Tories that John Bercow could be challenged.

The swearing in of MPs then takes several days.

Throughout that period, Mr Brown would remain Prime Minister if he had not been defeated.

Ministers would remain even if they had lost their seats as MPs. If a coalition government could not be formed, another general election could be called. But there is a desire in Whitehall that this should be a last resort.

The new guidelines make it clear that the Queen could refuse a request for a new election if it were close to the first. The last hung parliament was in 1974 when the Tory Prime Minister Edward Heath lost the Commons in the February general election, failed to form a coalition with the Liberals and resigned several days later.

Harold Wilson formed a minority Labour government and in November asked the Queen for another election.